Ether Falls Twice as Hard as Bitcoin as Cooling Chip Trade Rattles Crypto Market

As enthusiasm for artificial-intelligence chip stocks cools and the technology-stock trade unwinds, concerns about richly valued assets are deepening across global financial markets and spilling into cryptocurrencies. Ether has fallen twice as much as bitcoin during the volatility, underscoring the strong correlation between crypto assets and traditional technology chip stocks. The divergence has also become an important gauge of shifts in market risk appetite.

A recent decline in chip stocks has dragged Ether lower. Nearly $97 million flowed into U.S. spot Ether ETFs during the first three trading days of this week, but the inflows failed to halt the slide, while the HYPE token dropped 10%. The latest on-chain data from Glassnode shows that the Fear and Greed Index, a measure of market sentiment, has fallen to 25, indicating that the broader market remains in “extreme fear.”